China's National Financial Regulatory Administration issued a notice setting the 2025 agenda for financial services to micro and small enterprises, with an overall objective to “maintain volume, improve quality, stabilize price and optimize structure” in inclusive finance support. The notice calls for continued credit support alongside stronger risk management to improve the quality of micro and small enterprise lending. It instructs banks to strengthen loan pricing management, keep interest rates for inclusive micro and small enterprise loans at a reasonable level, expand the use of financial technology to reduce operating costs, and standardise third-party cooperation to lower overall financing costs. To improve the structure of supply, banks are asked to expand first-time borrower outreach, strengthen implementation of loan renewal policies, increase the provision of unsecured and medium-to-long-term loans, and enhance services for micro and small corporate entities. The notice also sets requirements to deepen the financing coordination mechanism for micro and small enterprises through stronger central-local coordination and improved effectiveness of the “four-level vertical management” system, with banks expected to support micro and small firms in areas including foreign trade, private business, technology and consumption so that credit reaches the grassroots quickly, conveniently and at appropriate rates. Banks are further required to improve internal incentives, resource support, organisational arrangements, staffing, and implementation of due diligence exemption policies, while insurers are directed to strengthen top-level planning, develop and promote products suited to micro and small business needs, and raise the efficiency of advisory, underwriting and claims services. Cross-departmental coordination, credit information sharing and dissemination of good practices are also highlighted.
China Banking and Insurance Regulatory Commission 2025-05-07
China's National Financial Regulatory Administration sets 2025 requirements for micro and small enterprise finance including stable lending volumes and reasonable inclusive loan rates
China's National Financial Regulatory Administration's 2025 agenda for micro and small enterprises focuses on maintaining volume, improving quality, stabilizing prices, and optimizing structure in inclusive finance. It emphasizes credit support, risk management, financial technology to reduce costs, improved loan pricing, and outreach to first-time borrowers. Banks and insurers should enhance incentives, resource support, and product development, focusing on coordination and information sharing.